Bankruptcy Should Be An Option For Some Student Loans: Report

Through this partnership consumers and consumer advisors who use MortgageKeeper to access a broad directory of resources will be directed to the SLA to access assistance by a national student loan counseling provider. A wide range of consumer advisors use MortgageKeeper to provide numerous support services; advisors include hundreds of nonprofit counselors across the country and mortgage servicer representatives. MortgageKeeper is highly focused on expanding the use of our tool so no consumer in need goes without services that are within reach. Our partnership with SLA assists our efforts to ensure student loan borrowers have access and consumers with student loan debt, who depend on our services, receive quality counseling provided by reputable nonprofit counselors part of the Student Loan Alliance, stated Rochelle Nawrocki Gorey, President of MortgageKeeper. The Student Loan Alliance will also link student loan borrowers to other services provided through MortgageKeeper in more than 20 different service categories The President and CEO of SLA, Larry Gilmore, stated, The Alliance is excited to be partnered with a consumer focused organization like MortgageKeeper. Our counseling agencies know that borrowers with student loan debt challenges typically have other challenges and are in need of http://www.obamastudentloanforgiveness.net other supportive services.
Source: http://www.sfgate.com/business/press-releases/article/Student-Loan-Alliance-SLA-Partners-with-4750970.php

The CFPB has suggested Congress review the laws restricting private student loan borrowers from discharging their debt in bankruptcy, and some lawmakers have introduced bills to make such a change . However, CAP’s bankruptcy proposal would also include federal loans, as the report notes that Parent PLUS loans don’t offer protections like income-based repayment plans. “Ultimately this is something where Congress will have to act,” said Bergeron, formerly the acting assistant secretary for postsecondary education and deputy assistant secretary for postsecondary policy, planning and innovation at the U.S. Department of Education. Bergerson said this reform is unlikely to be something the Obama administration could implement on its own.
Source: http://www.huffingtonpost.com/2013/08/20/bankruptcy-student-loans_n_3782816.html

Government Switches Student Loan Servicers: What You Need to Know

2) Many students have more than one loan, resulting in a sum total of loan payments that can be overwhelming.Understanding the risks can help mitigate untimely exposure to unsustainable repayment agreements. 3) Excessive loans can negatively impact credit ratings, increasing interest rates and resulting in a higher total cost of ownership for essential items such as car and home purchases. To help manage financial repayment of student debt, the following tips are recommended for new graduates, current students, or anyone struggling with student loan repayment. First, Know Your Options There is a wide range of loan types.Federally guaranteed loans generally allow extended, graduated, or income-based payments.Each has advantages.Extended repayment allows you to stretch out repayment up to 25 years. Graduated repayment starts out with a low monthly payment, which then increases about every two years, a good option if you expect your income to also increase.Income-based payments are based on a combination of household size, income, and loan balance, which is good if you have an unstable income.Of course, any sort of arrangement that doesnt pay off the loan quickly will result in greater interest paid over the life of your loan, but that option is better than defaulting on an agreed loan schedule, or missing payments, which causes long-term financial damage but can often be avoided. Second, Consider a Student Loan Consolidation If you havent gone into default on your student loans, then you can ask your lender for a forbearance, or deferment.In simple terms that means you will be exempted from a set number of payments, although interest will still accrue during this period.There are a number of qualifying conditions, such a medical or personal problems, or other reasons you can document to justify an impact your ability to make payments as agreed.Sometimes you can even qualify if youre already in default, but in every case it is best to find out about your options before you need them.
Source: http://blogcritics.org/managing-student-loan-debt/

Time to Bring Bankruptcy Back for Student Loan Debt

The latest figures show that about one in nine student loans are now 90 days delinquent or more. (And delinquency rates in general are much higher .) Total student debt sits at about $1 trillion, more than either auto loans or credit card debt. The issue so consumes the middle classfrom parents planning to pay for their children’s college all the way down to debt-wracked recent graduates that Barack Obama is setting off on a ” bus tour ” to tout his plans for making college more affordable. One way, of course, would be to bring down the ever-rising price tag of college tuition. That process, which will be driven by good old-fashioned supply and demand and customer outrage and increased appropriations from broke-ass state governments, will not happen overnight. In the meantimefor the millions of people who are already laboring under loads of student debtit would be nice to allow for a sober and responsible route into bankruptcy for student loan debt, just like there is for other kinds of debt.
Source: http://gawker.com/time-to-bring-bankruptcy-back-for-student-loan-debt-1177948307

Managing Student Loan Debt

Minsky, a Boston lawyer specializing in student loan law, said he has had several people contact him as they receive transfer notification. 4 Ways to Pay Off Your Student Loans Faster “They were contacted by a company they had never heard of before saying, We’re going to be your new loan servicer, please start paying us,” Minsky said. “Borrowers aren’t being notified until the transfer is just about to happen or has already happened. That can be really scary for borrowers.” How to Prepare for the Move Though the Education Department hopes the transition will go smoothly, as stated in the announcements, those with student loans may want to take a proactive approach to the changes. “People need to be careful and make sure everything transfers correctly,” said Heather Jarvis, a student loan expert. Jarvis said past transfers have yielded numerous reports of errors.
Source: http://abcnews.go.com/Business/government-switch-student-loan-servicers/story?id=19975798

Advertisements

Why a frontier markets ETF resisted the emerging markets exodus

WHICH ETF ‘S T BUY NOW In order to do that, and in order to create and destroy ETF shares, those firms have to carry at least some holdings. Basel 3 and the Volcker rule could limit ETF trading partners in the secondary and primary market, and also limit the inventory that the external traders carry. The net impact of this could be less liquidity and wider bid/ask spreads, write the CS analysts. More from Siegenthaler & Co.
Source: http://blogs.barrons.com/focusonfunds/2013/08/21/basel-iii-volcker-rule-could-crimp-etf-business-too-analyst/

From March 2009 through last month, its correlation with the S&P 500 was 0.47 vs. the MSCI Emerging Markets Indexs 0.77 correlation, according to analyst Dennis Hudacheck at IndexUniverse. FMs quite different performance also makes sense when you dive into its unique makeup , as the ETF Professor did last week. Kuwait, Qatar and the United Arab Emirates account for 59% of its weight, although that will change next year as MSCI recently deemed Qatar and the UAE to be emerging rather than frontier markets. With FM, youll also get exposure to countries like Argentina as well as Nigeria, which is a particular favorite of Mark Mobius , whos been adding exposure to frontier markets.
Source: http://blogs.marketwatch.com/thetell/2013/08/21/why-the-frontier-markets-etf-resisted-the-emerging-markets-exodus/

Turkey ETF Tumbles on Surprise Rate Hike – ETF News And Commentary

Yesterday, the shares fell 1.0%, which took the trading range below the 3-day low of $52.54 on volume of 3.9 million shares. Often times after large one-day declines, short-term traders may play for some degree of mean reversion. Vanguard European ETF share prices have moved between a 52-week high of $53.33 and a 52-week low of $43.84 and are now trading 19% above that low price at $52.24 per share. Over the last five market days, the 200-day moving average (MA) has gone up 0.2% while the 50-day MA has advanced 0.2%. SmarTrend recommended that subscribers consider buying shares of Vanguard European ETF on July 17th, 2013 as our proprietary SmarTrend analytics indicated a new Uptrend was in progress when shares hit $50.71. Since that recommendation, shares of Vanguard European ETF have risen 4.1%.
Source: http://www.mysmartrend.com/news-briefs/news-watch/vanguard-european-etf-set-possibly-rebound-after-yesterdays-selloff-102

The YieldShares High Income ETF (NYSE: YYY) Declares First Distribution

Bottom Line Worst of all, the fund’s breakdown suggests that more losses could be in the cards if these kind of trends continue. Roughly half the portfolio is devoted to financials, suggesting that any news about currencies will have a big impact on the fund (see 3 Top Ranked Financial ETFs to Buy Now ). While it is true that there is solid exposure to sectors that might do alright regardless of this environment, such as industrials (14.5%) or materials (7.1%), or relatively low beta sectors like staples and telecoms (combine to make up 20% of assets), it is clear that they aren’t enough to break the overall trend lower. Given this, it might be worth it to stay away from the Turkey ETF for the time being. The ETF currently has a Zacks ETF Rank of 3 or ‘Hold’ so there are plenty of other options out there.
Source: http://www.nasdaq.com/article/turkey-etf-tumbles-on-surprise-rate-hike-etf-news-and-commentary-cm269317

Where To Invest When The Stock Market Bubble Bursts

and AT&T Inc. fell 1.7 percent and 0.5 percent, respectively. Stocks such as utilities, pharmaceuticals and telecommunications are often purchased because they provide a higher-than-normal dividend. As Treasury yields rise, it makes all dividend-paying stocks less attractive to investors because Treasuries can provide a similar return with significantly less risk. You try to focus on stocks that usually benefit from higher interest rates — banks are a good example, said John Fox, who oversees $873 million in assets as co-manager of the FAM Value Fund.
Source: http://www.washingtonpost.com/business/stock-market-edges-higher-early-friday-but-stocks-remain-down-for-the-week/2013/08/16/22e1d9b2-0684-11e3-bfc5-406b928603b2_story.html

Three reasons to worry about the ‘hot’ IPO market

Well, something… WESSEL: Get that? GREENE: I do. Something else that keeps economics reporters gainfully employed, following trends around the world. And there have been some unexpected ones going on right now. WESSEL: That’s right.
Source: http://www.npr.org/2013/08/16/212527895/stock-market-falls-as-u-s-economy-does-better

Everbright Securities Trading Error Roils Shanghai Stock Market

The NYSE index is greater in value than it was 50 trading days ago. Originally, this was expressed as a rising 10 week moving average, but the new rule is more relevant to the daily data used to look at new highs and lows. The McClellan Oscillator is negative on the same day. The number of New 52 week highs cannot be http://www.todayhotstocks.com more than twice the number of new 52 week lows (though new 52 week lows may be more than double new highs). Doomers will argue that this only supports their case for a major 1987-style sell-off .
Source: http://www.businessinsider.com/hindenburg-omen-warns-of-stock-market-crash-2013-8

Stock market opens lower after Nordstrom joins other retailers in cutting outlook

The Standard & Poors 500 index slipped 5 points, or 0.3 percent, to 1,657. The Nasdaq composite rose one point, or 0.05 percent, to 3,607. More business news Where presidents play, wealth gap is stark Billy Kenber Marthas Vineyard is actually a place where the wealth gap is starker than almost anywhere else in the United States, residents say. Many rely on food banks. Capital One acquires Beech Street Capital Jonathan OConnell The move means Capital One is poised to become a larger player in the financing of apartment buildings.
Source: http://www.washingtonpost.com/business/stock-market-opens-lower-after-nordstrom-joins-other-retailers-in-cutting-outlook/2013/08/16/eba46cac-067a-11e3-bfc5-406b928603b2_story.html

When You Get This Many Hindenburg Omens, The Stock Market Is Supposed To Crash

Disruptions in electronic markets have been under scrutiny since a May 2010 incident in which the Dow Jones Industrial Average fell almost 1,000 points in minutes before rebounding. This is a negative development for Everbrights stock, said Liu Jun, an analyst at Chang Jiang Securities Co. in the central city of Wuhan. Everbright Securities business transformation has been slower than expected and its investment banking business is under investigation, which could affect its bond underwriting. The Shanghai Composite jumped from a loss of as much as 1 percent to a gain of 5.6 percent in two minutes during the morning session, as 16 of the measures 20 biggest companies by weighting increased by the 10 percent daily limit.
Source: http://www.bloomberg.com/news/2013-08-16/everbright-securities-investigates-trading-system-error-1-.html

To appreciate why the second explanation is closer to the truth, consider a study of the stock market between 1929 and 2001 conducted by Owen Lamont, then a finance professor at Yales School of Management and currently a lecturer at Harvard. He found that companies tend to issue stock in waves, and that the stock market tends to be a below-average performer following periods in which stock issuance is particularly high. Click to Play GrubHub Seamless now at 25,000 restaurants strong GrubHub and Seamless approved a merger last week that now covers about 25,000 restaurants in 500 cities. Jonathan Zabusky, former CEO of Seamless and current president of newly united GrubHub Seamless, joins digits. A second reason to worry about the IPO market comes from the kind of companies that have come to market in recent weeks.
Source: http://www.marketwatch.com/story/three-reasons-to-worry-about-the-ipo-market-2013-08-13

Security in this kind of balanced portfolio is invalid, and investors will be crushed. Some smart investors have been aggressively liquidating holdings directly affected by the public markets, in anticipation of an imminent collapse. We are among those who have begun to reduce our exposure to the public markets. Where appropriate, we believe that a strategy of up to 70% of assets invested in both liquid and illiquid alternative investments will be very successful moving forward. Our selection of alternative investments is an intensive process, which attempts to avoid virtually any investments that have performance directly tied to the appreciation of the S&P 500, and stability of the bond market.
Source: http://www.forbes.com/sites/jeffreysica/2013/08/15/where-to-invest-when-the-stock-market-bubble-bursts/